Korean Survey: High Hopes for New Tech, Less for Blockchain and Metaverse

SK C&C to provide ChainZ Security Token service for Hana SecuritiesSK C&C, a comprehensive digital solutions provider and the affiliate of South Korean conglomerate SK Group, announced Tuesday (local time) that it will provide the blockchain-based ChainZ Security Token service to Hana Securities for the securities firm’s construction of a security token system.Security tokens enable the conversion of assets such as real estate, art and carbon credits into digital tokens. These digital representations open up opportunities for retail investors to make fractional investments in assets that were previously beyond their reach due to high minimum investment requirements.Hana Securities’ involvement in security tokens emerged when its parent company, Hana Financial Group, joined a consortium called the Next Finance Initiative (NFI) in June to expand the security token ecosystem. In this collaborative effort, Hana Securities is set to develop infrastructure that will enable the establishment of extensive security token services. This infrastructure will support functions such as the issuance, distribution and procurement of security tokens.Photo by Shubham Dhage on UnsplashSecurity tokens on EthereumThe ChainZ platform allows the creation, issuance and trading of tokenized assets on the Ethereum network by simply calling an application programming interface (API). The company explained that being compatible with several Ethereum standards, including ERC-20, ChainZ enables users to create diverse token-related services with just a few clicks.SK C&C will leverage the ChainZ platform, which supports distributed ledger services, to manage token offerings and allocations. Additionally, the company will offer security token-related services, which will include processing investor orders and facilitating the buying and selling of tokens.Choi Cheol, Head of SK C&C’s Web3 and Convergence Group, said that the security token system of Hana Securities will lay a foundation for securities firms to adopt security token services and engage in business collaborations with each other. According to Choi, SK C&C is committed to providing secure trading services for security tokens, catering not only to securities companies but also to a broader range of enterprises and general investors. The tech company is also planning to take an active role in NFI and other consortiums with securities firms as a part of its strategy to enhance these efforts further.

Korean Financial Authority Orders Suspension and Levies $1.4M Fine on Crypto Lender DelioDelio, a cryptocurrency lending company based in South Korea, has received a directive from the financial regulatory authority to cease its operations for a duration of three months, according to local news agency Yonhap. Additionally, the company has been levied with a fine amounting to KRW 1.896 billion ($1.4 million).Photo by Riva Ferdian on UnsplashExecutive dismissal recommendedThis announcement was made on September 1 by the Financial Intelligence Unit (KoFIU) under the South Korean Financial Services Commission. In addition to the measures mentioned above, the KoFIU advised the company to remove one of its executives.As a virtual asset service provider (VASP) registered with the financial regulatory authority, Delio offered deposit services with an annual yield reaching up to 10.7%. However, in June of this year, the company abruptly halted its withdrawal services, prompting investigations conducted by both the KoFIU and public prosecutors.Involvement with unregistered VASPsThe KoFIU saw that Delio had engaged in trading activities with unregistered VASPs and had also breached the restrictions on the trading of affiliate-issued virtual assets. These actions are prohibited under the Financial Transaction Information Act.The financial authority identified a total of 171 instances in which Delio facilitated the transfer of its customers’ virtual assets to unregistered VASPs located outside the country. Additionally, the authority also uncovered the company’s engagement in storing the virtual assets of unregistered VASPs.It was also discovered that Delio had not only neglected to assess the risks of money laundering before introducing new products or services but had also failed to fulfill Know Your Customer (KYC) obligations.

The Seoul AI Innovation Tour 2024 – scheduled from March 5 to 7 – came to an end yesterday, Korean media outlet ETNews reported. Under the theme of “Navigating the Future: Unveiling Seoul’s Prowess in AI Innovation,” the event highlighted Seoul’s potential as an AI technology hub and facilitated discussions on global cooperation to foster the Asian fintech and digital asset industry.  The event was jointly hosted by the Korea Fintech Industry Association (KFIA) and The Asian Banker, a Singapore-based consultancy in finance and banking services. Several major Asian banks and fintech industry insiders attended the event, including officials from Permata Bank in Malaysia and Bank SinoPac in Taiwan. Photo by Headway on UnsplashLee Keun-ju, President of the KFIA, stated in his opening speech that cutting-edge technologies such as AI will further accelerate innovation in financial services. He also emphasized how the Korean financial and fintech industry developed at a breakneck speed over the past decade, introducing the landscape of the Korean fintech industry to bank officials.  Sharing insights on fintech and digital asset industry In the initial session, KFIA officials delivered speeches on the current financial environment of Korea and the association’s contributions to the local fintech industry. The following discussions revolved around development strategies for the fintech industry and collaborative efforts between the association and government institutions. In the later part of the event, leading local fintech insiders discussed the outlook of the security token offering (STO) and digital asset industry, sharing strategies to broaden their businesses to overseas markets.